In 1788, King Gustav III created two new grades of the order, which could only be bestowed in war time: These grades proper were only given to commissioned officers, but an affiliated decoration, the Svärdstecken ("Badge of the Sword"), introduced in 1850, was given to non-commissioned officers; one thus decorated would call himself a svärdsman ("Swordsman").

Both the non-commissioned officers and the enlisted men had to have served for at least sixteen years to qualify for the Badge and Medal respectively.

King Carl XVI Gustaf of Sweden frequently wears his Commander Grand Cross necklet and badge.

The Bill was passed on 15 June 2022, and the Order of the Sword was re-introduced into the Swedish honours system on 1 February 2023.

[6] On 29 September 2023, Colonel Ryan S. Sweeney, defense attaché at the American embassy in Stockholm, became the first person since 1974 to receive the order.

By the oath the Commander elect bound himself “to defend with life and property the Evangelical-Lutheran religion, to serve faithfully the King and the country, and to combat courageously against the foes of the country.” When a foreigner was elected a Commander of the Grand Cross, the insignia were sent to him abroad, while he, in his turn, transmitted to the archives of the Order a statement of the services rendered by him.

The new ceremony is held in the White Sea Hall of the Stockholm Palace, decorated with the banners and insignia of the royal orders.

Not even the King of Sweden can wear the decoration until a "Swedish army under His command has been victorious, either through combat or conquest".